Texas House Bill 1709 was introduced, and if passed would establish the Texas Responsible Artificial Intelligence Governance Act to regulate AI systems used by businesses and state agencies in decisions affecting consumers and employees, including employment, finance, health, and safety.

A significantly large bill with dozens of definitions, regulations, and exemptions, this bill is likely to draw significant attention in 2025 as AI continues to become increasingly integrated into business operations. The goal of this bill is to strike a balance by supporting technological advancements while ensuring these solutions are deployed responsibly within an ethical framework.

The bill would also establish an Artificial Intelligence Advisory Council to oversee compliance with the proposed regulations, and would authorizes the Attorney General and state agencies to enforce penalties for violations, such as issuing fines of up to $100,000 or license revocation.

Additionally, the bill also creates an Artificial Intelligence Regulatory Sandbox Program, offering temporary regulatory exemptions for entities testing AI systems, while exempting small businesses from its provisions.